wh ere do stock prices come fr om? The easy answer is that they are the outcome
of supply a nd dema nd, that is, the price of any given stock is that which
causes the quantity supplied to equal the quantity dema nded.
Of course, that answer, like most easy answers, is unsatisfying. What
causes the supply a nd dema nd fo r a stock to be what it is? There are two sets
of players in the game that we call the stock market: (1) the sell side, consisting
of issuers (seekers of capital) a nd their agents, called “investment bankers” o r
“stockbrokers,”1 a nd (2) the buy side, consisting of saver-investo r s (providers of
capital) a nd their agents, called “investment managers. أقرأ أقل